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China Takes Advantage Of September Price Drop; Imports Record Amount Of Gold
Remember how virtually all "experts" speculated that the drop in the price of gold would set off a liquidation cascade in China, where everyone was "loaded to the gills" and at the first hint of deflation would dump all holdings (not to mention that economic Ph.D. proclaimed the gold "bubble" popped two months and $200 lower)? It seems that as so often happens when all experts agree on something, it is precisely the opposite that happens. The FT reports that "Chinese gold imports from Hong Kong, a proxy for the country’s overall overseas buying, leapt to a record high in September, when monthly purchases matched almost half that for the whole of 2010....After hitting a nominal all-time high of $1,920.30 a troy ounce in early September, the yellow metal fell to a three-month low of $1,534 an ounce later in the month. Chinese investors snapped up the metal as prices fell." Fair enough: this means the natural bid under gold will pretty much always be there, especially since the SHCOMP plunged at the same time, and if there was truly cross asset liquidation, imports would hardly rise. Which begs the question: if not China, then who sold? Was the move purely a function of fears that Paulson was liquidating? Or were rumors that various central banks are liquidating gold, actually true? We will likely find out when the next WGC report is filed. WE will also know that the Chinese number for total gold holdings is grossly underreported.
More from the FT:
Analysts expect the September import surge to continue until the end of the year as Chinese gold buyers snap up the yellow metal in advance of Chinese New Year, China’s key gold-buying period.
“In September we saw some bargain hunters come back into the market on the price dip,” said Janet Kong, managing director of research for CICC, the Chinese investment bank.
Data from the Hong Kong government showed that China imported a record 56.9 tonnes in September, a sixfold increase from 2010. Monthly gold imports for most of 2010 and this year run at about 10 tonnes, but buying jumped in July, August and September. In the three-month period, China imported from Hong Kong about 140 tonnes, more than the roughly 120 tonnes for the whole 2010.
And before the experts congregate and conclude that this time China will certainly start dumping gold, this time for realz, read this:
The last two months of this year are likely to see China’s gold imports surge further ahead of Chinese New Year, supporting gold prices, according to Ms Kong. “We’ve noted a quite strong seasonality in gold prices, typically prices go up in the months before the Chinese New Year.”
So in addition to being a comfort to gold bulls, does this report also undermine all goalseeked reported from China that inflation in the country is moderating? Because if anyone knows best, it surely is the locals.
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More Gold Bitchez!
They're gonna drop the bomb on us at some point and we'll be super sorry when they back the renminbi with gold. That will be the Pearl Harbor of WW3.
http://www.singledudetravel.com/2011/07/gold-and-other-investments-for-the-single-dude/
Gold - bLitches!
Looks like GTU ETF is buying gold with additional units they have created $180 million worth?
Chinee buying Up Everything REAL, for US Pennies on the dollar...
Thanks ALL Genious MBA's for getting us here!!!!!!!!!!!!!
CHINA IS BUYING BOTH GOLD & SILVER
Yes it is true that China bought a great deal of gold in SEPT. They also used to export 3,500 tonnes of silver a year and now they IMPORT silver. The Chinese are smart to buy gold and silver when they get globbered while here in the states we have our DEFLATIONIST ANALYSTS who tell us to sell gold and silver on Spikes. I am not going to name names...but there are at least a good dozen of them out peddling the deflation card.
One more thing... many are saying silver is behaving more like copper and is more an industrial metal than a precious metal. I don't know of any COPPER EAGLES, PHILHARMONICS, MAPLES or etc. It's mostly gold and silver.
Lastly, silver is actually doing much better than copper over the past year and a half. In March of 2010 you could buy 5lbs of copper for one ounce of silver, whereas today you can buy 9.5 lbs of copper for one ounce of silver. I have written a blog piece at the SILVERGOLDSILVER website which you can find at the link below:
COMPARING GOLD-SILVER to COPPER
http://www.silvergoldsilver.com/index.php?option=com_smf&Itemid=39&topic=594.0
When gold was taken down in SEPT, silver's fall was almost identical. Silver is heading much higher with gold. Deflation is for dummies.
Platinum is behaving like copper and is WAY more precious than silver...or gold
China appears to be preparing for internationalization of the Renmini using gold as a throttle. Whether or not they go all the way and back the currency with gold remains to be seen. I don't think it's a coincidence that they and their good friends Russia have been so aggressively acquiring physical gold though.
yeah, um, at the same time they are pumping 1T yuan into their banks? LOL at the CNY as any kind of reserve currency. As a reserve you're better holding toilet paper than Chinese paper.
Actually that would be the worst think they can do.
They would be the biggest losers with minuscule Gold reserves compared to the US and Europe.
Assuming America still has its Gold, such a move would destroy the dollar as a reserve currency but it would also destroy/devalue the debt too, making China poor and America rich again.
The Chinese are trapped and will be trapped for a long time unless they invade America.
China invade America... How?
key word in your analysis... ASSUMING
so many things happen that are counter-intuitive in the world marketplace because it is totally fucking manipulated. while the Chinese have indeed backed themselves into an unsatisfactory position... they are exposed to too much US debt....
they are in a much better position than we are. we are debtors, they are creditors. when the goods stop flowing here and the world monetary system changes away from the dollar-reserve standard we will be the ones that get FUCKED.
they also run an inflationary monetary policy... so they have garaunteed the inevitable bursting of their real-estate bubble... but we are the ones that are trapped.
we lack the political will to address the fundamental problems with the US economy... i.e., we seek to usher in economic growth based on flawed economic policies which view the world upside-down... more spending, more debt, more money.
we cannot grow our way out of our debt obligations... with future entitlement promises our debt figure is closer to $150 trillion than $15 trillion. We are trapped. We will print to cover our obligations, so anyone earning dollars for a wage or forced to deal with dollars (any oil exporter) will be forced to accept a lower standard of living.
buy silver bitches.
due to how china dealt with reserves, they aren't really a creditor in the sense that you believe
don't see that happening.
Renminbi has to be pegged to the US dollar or Chinese exports fall off the cliff.
We're in a symbiotic relationship, with a lose-lose situation. All the Chinese can do is get rid fo the US fiat by exchanging it for hard assets.
Not to mention China's debt problem. Think they're much better the US? The state and local governments have trillions in debt and mortgage losses. I doubt the politburo in China would dare give up legal tender laws and fiat currency and restrict themselves to hard asset backed currency.
Yesterday I read somewherre that lots of RICH Chinese are trying to get OUT!
China will fucking steal anything from anyone the Party wants.
This is precisely why NOBODY would trust them as a reserve currency...EVER. They've tried to steal every single technology that has ever entered their four corners and then counterfeit it.
Yeah, with all the fake rolexes, LV, and stolen high speed rail systems, right, Europe is right there with the yuan bein a reserve LOL. Nobody who ever put any IP into China would trust anything they ever wrote on paper. Ever.
China had the ORIGINAL hyperinflation.
China: largest gold exporter in the world.
http://en.wikipedia.org/wiki/Gold_mining_in_China
Importer too? It does wonders for GDP.
Not exporter says your wiki link!
Perhaps meant to say 'largest producer', in which case may be pointing out that importing gold would shrink their trade deficit.
No id-er. Just putting it out there. Lotsa gold in China.
When I need some and do not want to fill out the US-1099. I go to China.
Thank you from China!
China stopped exporting gold a few years ago. They are keeping national production and importing gold now.
China is the Biggest Producer of Gold and it's ileagal to ship gold outside of China for even significant amount.
The other thing is China's gold reserve in ''Fort Knox'' wasn't belong to the current communist government , but the former government of KMT aka Republic of China during WW2. Since the establishment of Communist Government, China never ship any its own gold outside of China, and all the gold products they mined for themselves from outside of China are all bypassing the trading in London and ship directly to Shanghai.
So basically the socalled WGC or Fed will never be able to get to know exactly how much their gold reserve is just like their nuclear heads. It's all under-reported for national security
I thought China kept/bought all domestically mined gold...
WTF just happened on the markets?
Seriously straight line up. All exchanges..
Listen.. when they are busy doing God's Work.. everything goes up towards heaven!
We will all be saved now!
Thank God for Wall Street!
or.
Open Market Operations / Heavy HFT Volume are pushing the Markets Higher and PM's Lower! Just like in nature! all natural movements..
I'll go with the guy (who threatens the Iranian Navy if they show up here) on this one. The PPT...
What else can it be except Italy?
Do people really think replacing the PM would change Italian econimic picture? Italian PMI indicates a deep recession.
Stealth QE3
Only reasonable explaination of why Oil, Gold and Silver are going batshit crazy as in UP.
Inflation incoming people. Someone just printed another trillion.
China under reporting their gold purchases? Who coulda knowed? LOL
GSS, SSRI, CDE all getting dryhumped today 7%+
Many "money manglers" are picking up these beaten down junkers
In order to "make their year" in just 2 months.
I think you just failed the Turing test.
You really shouldn't get junked for those observations, after all, SSRI will not trade at these prices for long. There will be a sort of tech mania type deal at some point.
He could say the sky is blue, the sun is warm, and the grass is refreshing and I would still junk him at this point.
Yeah... me too.
But would you do the same to RoboTrader?
Oh that's a problem.
Play our game and you will be richly rewarded! We can be generous, when the mood takes us.
Market just jumped 0.5% on this?
Fuck the markets...
Broken forever.
Shhh...don't tell the Chinese but the EU has had another secret summit to nullify the value of gold...it will now be priced similar to copper and used for water pipes..
Seeing as I already use gold to filter my coffee I have no issue with using gold for water pipes. Thanks for the suggestion.
Gold going to China, Russia, Venezuela, etc...leaving the west. No worries we'll get it back after we win WWIII
Let's get physical, Physical... well you know the song.
"WE will also know that the Chinese number for total gold holdings is grossly underreported."
Well ... that's true for me and my gold, too.
As aside wouldn't countries such as Italy be better off if their gold was calculated at $5,000 instead of $1775?
Maybe some of these guys will starting wondering whether or not they are actually members of the 1%'ers or ... maybe they should start thinking like a 99%'er.
News Reporter FAIL is your gain. The longer sheeple have no clue, the more time you have to buy before they wake up.
www.youtube.com/watch?v=ZLL2r3hXmjA&feature=player_embedded
AND...you can't eat it.
Assuming the reports are true, accurate, and not China propaganda, it begs the question of whether the Occidental PTB and sovereigns will have to change tact. Soon.
Do they want China to acquire the phyzz? Whats the geopolitical advantage? How does that satisfy the step to a world currency, unless there has been some sort of agreement behind the scenes that China has signed on.
It's hard to imagine they could be intending on rebooting a system where China wouldn't adamantly question and demand audit of stated AU quantities, as well as allow an unmonitored reserve of PM's that surely would be fractionalized.
Either China is double-dealing against the worlds population in cahoots with the West, or they will be a definitive target of the MIC.
( ! )J Hook Line and Sphincter
Anyone know why the hell stocks are rallying?
No clue. No news.
It's like not one single retail trader in on the floor and a single HFT just bought itself into a position it will never escape from.
Now I wonder which one of the trade houses are fucked.
It was just a fat finger, do not be concerned.
The robots are doing a fine job churning this market higher. Next up stock recommendations(that have already made their move) from Robo.
China knows how to BTFD
They probably with their hackers caused the dip....don´t ever think the Chinese won´t cheat or steal...they do all the time...
+ 1 Yes.
what the hell happened right before 2:00? Nice vertical spike in the BS market, rumor of another rumor? Netfux is back obove $90, seriosly?
insanity is ruling the Nasdaq, frickin earthquake chart today.
can't watch this anymore. Angie's list going public is enough for me to want to blow people away. You can't get more insane.
HFT's are hooked up to all trading accounts everywhere, and they make certain, to hit all stops if you're long, or shorting!
Why why why would China buy some barbarous tradition against the better advice from the allmighty monetary wizard with a PhD???
I would've bought a ton or ten around $1534 if I had a bunch of worthless USD's laying around but alas, I am not China.
The Chinese are savvy buyers; they wouldn't have missed that huge dip.
It is not just the Chinese who bought that dip.
However, the price has gone up quite fast again.
Let’s see what happens if/when it hits $1800.
New Chinese restaurant menu item: Goldbuying Wei fun
I have been mentioning the full USA default in end of 2015-beginning of 2016 here:
http://www.tfmetalsreport.com/comment/78029#comment-78029
However, in initial post about this issue, I was speaking about US debt correction, that is distributed haircut of around 3 trillion USD in 2013-2014:
http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&st=0&sk=t&sd=a&start=100#p31678
Here is the chart that supports that initial view. Its a fit of certain pre-crash behaviour model. How it is produced, is explained here:
http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&p=34998#p34998
So its earlier than I was saying lately. Lately I was talking of a full scale default, but it looks like it will be gradual, and the first one will happen very soon. To be honest, I forgot about my first idea-but usually they are the most accurate. So some assumptions following it will have to be reworked.
The approximate visual fit with Sornette Johansen log-periodic process with critical time tc = September 30 2013-January 1st, 2014:
http://farm7.static.flickr.com/6100/6322611889_f67e5664fe_o.png
QUESTIONS:
1) The distribution of haircuts of such partial US default (who will forgive 3-4-5 trillion USA debt in few months?)
2) consequences for USD rate to currencies
3) consequences for USD rate to commodities
4) consequences for USD rate to gold, silver ( i will dig into my charts on this)
Did you know that GLD SPDR would rank 6th on WGC's list of national gold reserves?? 1,239 tonnes.
That would be correct if they actually had the 1,239 tonnes.
but, but, but .......gold is in a bubble....gold is in a bubble...........yada yada yada..........
when no one has any american $ to buy gold from china with..... whats gonna happen????
Robot, you are pathetic. How about NEM RGLD GDX FNV. Nah, why mention quality, just makes you look idiotic. Will you ever learn.
And just like the national gold reserves, a bankster fabrication.
Now if I can only get China to lend out it's gold to lower the price of gold....
who was the Phd, I don't recall
Funny how mining stocks are underperforming the metal(s) again. What a waste.
It's all JPM and HSBC fault. They keep shorting the Gold and silver to recover the naked shorts. China, India and whoever foreigners are taking advantages of clearing our stocks on the gold and PM's.
All we got left are fiat paper. And we have no shortage of those fiat to begin with.
If I'm China, I'd rather own gold than U.S. Bonds.
If I'm ANYONE, I would rather own gold than U.S. Bonds.
Word.
Lots of gold on a lot of slow boats to China.
Impulse power only, slow and steady wins the race.
@Robo - hello do you even know CDE reported today and litteraly SMOKED the estimates ? Trading on a realized P/E of 6.5 with average Silver @38. Maybe you like the momentum stocks better ?
Financial TImes jerkwads trying to 'expert' Gold and the Chinee in one story? Strike one.
Gold moving up today in a manner reminiscent of a top? Strike 2.
Jiggery-pokery with margin requirements and the ongoing liquidation/calls on MFGlobal clients? Strike 3.
If you enjoy watching gold quotes, then you will probably emjoy the close today more than any close between now and Christmas.
I'mma short this bitch raaht nah - I'm not a gold hater (I was giving it love back in 2002, sub $300), but right now the buy side is full of retards who think it's a no-brainer... AFTER a $100-in-5-days rally.
Today has all the hallmarks of a squeeze - it's like those big NQ coast-to-coast up-days back in 2000: what I used to call 'balloon tennis' - every time it softens so much as a dollar, Paf!... it gets bought.
So mark me as short XAUUSD from $1793.00 - see you again at $1700, ladies.
I bet you're loving that trade already.
Gold has passed the 2% inflection point for a slam; watch the AH markets; they can't let this happen; or are they out of bullets? If gold passes $1800 then CRIMEX might explode.
With the Chinese banking sector on the brink of collapse,again (I've been to China and seen the huge empty towers that liter the country,although I haven't had the pleasure of seeing a proper "ghost city".) and the dollar imploding as usual the quickest and easiest way for the Chinese to escape their or at least mitigate their problems would be a huge gold importation binge followed by a massive price spike. At current prices gold is undervalued, the gold for paper trade at these values is an unbelievable deal.
It's such a simple and easy solution to their problems. Eventually everyone will catch and then we'll see the price of gold do some very interesting things.
Those idiots have made the manipulation of the gold and silver markets so fucking obvious even my cat knows to buy the dips / smash downs.
It really does make the CFTC look incompetent.
China may indeed be trying to situate themselves as the last standing solvent economy with sufficient resources to bail out the western giants under the condition that a gold backed renminbi be the new world reserve currency. That would hardly be a good thing.
Gold backed currencies allow the elite few who own sufficient quantities of gold, whether that be bankers or the Chinese government, to manipulate the money supply in their interests. Additionally, gold-backing inherently limits growth in the economy because the supply of gold itself is limited.
What we need instead is a fiat currency that is neither debt nor issued by a private central bank, but instead is issued by the state in a controlled manner so that the notes amount to a sort of barter equivalency. This was done under Lincoln with the greenback and the results were excellent in terms of organic economic growth and a widespread general prosperity among the masses. There was also no hyperinflation with the greenback, as there was with the continental. And the only reason there was hyperinflation with the continental was due to mass conterfitting by the British as a direct attack on the colonies in a successful attempt to undermine their curency. And there is no reason to believe such a mass conterfeiting could not also occur with paper notes backed by gold.
Bill Still, youtube him, bitchez!
Yup, Mr Still started the meme and I'm doing my best to try and help spread it.
Or could they unleash the freegold theory from thought to reality?
+ 1 Bravo, Alpha!
ZeroHedge needs to understand that gold isnt AAPL.
AAPL has a fixed number of shares, one party buying means someone is selling. Unless AAPL is doing a financing, the stock is fixed. There is only STOCK
Gold has both STOCK and FLOW
Because gold is not consumed, all there has to be for China to be a buyer and no seller is that there are no other bidders. China buys all the FLOW. STOCK doesnt need to change, there is no seller
Hedge liquidation? Central bank dishoarding? Or bullion banks naked short gold routinely knowing central banks will bail them out in freshly printed cash.
Those fuckers are buying gold and silver hand over fist because their chainsaw powered computer internet network just finished downloading the Zero Hedge world famous quote from Robotrader - "it only costs $5.00 to dig it out of the ground". Also, modern western diet is rotting their teeth. Do you know how many tons go into dental work alone in China? Fucking un believable!
Cheap Gold, so Jolly!
China reads ZeroHedge ,and knows the "BTFD" phrase.
China knows what the game is, as they all do. The game is to keep the dollar alive long enough to accumulate as many real assets as they can. They are protecting themselves from it's eventual failure. I had to laugh when Germany refused to offer up their gold as collateral for the Euro bailout fund. It means they either know the loans will all default, or that the paper price of gold is complete nonsense. Either way, if that news doesn't make you a gold bull then nothing will. I can't believe gold didn't go up $200 today. If world governments are out in the open broadcasting their loss of confidence in the very paper they create, how much longer can it be before we have an absolute panic into the real thing? Not long I think.
Does anyone know the last time US added to gold reserves?